Investing.com - Oil prices inched up on Tuesday, but held near the previous session's seven-year lows amid a global supply glut.
On the ICE Futures Exchange in London, Brent oil for January delivery tacked on 32 cents, or 0.79%, to trade at $41.05 a barrel during European morning hours. A day earlier, London-traded Brent sank to $40.60, a level not seen since February 2009, before ending at $40.73, down $2.27, or 5.28%.
The Organization of the Petroleum Exporting Countries failed to agree on output targets to reduce an oil glut that has cut prices by more than 60% since June 2014. As a result, crude prices are expected to remain stubbornly low amid a glut of oversupply on global energy markets.
The 12-member group produced approximately 31.5 million barrels per day last month. Global crude production is outpacing demand following a boom in U.S. shale oil and as OPEC opted not to cut production in order to defend market share.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange inched up 17 cents, or 0.44%, to trade at $37.82 a barrel. On Monday, Nymex futures dropped to $37.50, also the lowest level since February 2009, before closing at $37.65, down $2.32, or 5.8%.
Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 0.1 million barrels in the week ended December 4.
U.S. oil supplies in the U.S. rose for the 10th consecutive week last week, remaining near levels not seen for this time of year in at least the last 80 years.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.23 a barrel, compared to $3.08 by close of trade on Monday.